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MKANGO RESOURCES LTD.
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COTEC
HOLDINGS CORP.
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550 Burrard Street
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755
Burrard Street
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Suite 2900
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Suite
428
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Vancouver
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Vancouver
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BC V6C 0A3
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V6Z
1X6
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Canada
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Canada
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MKANGO SUBSIDIARY, MAGINITO,
AND COTEC APPOINT LEAD ENGINEERS BBA AND PEGASUS
TO COMPLETE THE FEASIBILITY
STUDY FOR HYPROMAG USA
London / Vancouver: March 11, 2024 - CoTec Holdings Corp. (TSXV: CTH;
OTCQB: CTHCF) ("CoTec") and Mkango Resources Ltd. (AIM/TSX-V: MKA)
("Mkango") are pleased to announce that Canada-based BBA USA Inc.
("BBA") and US-based PegasusTSI Inc. ("PegasusTSI") have been
engaged to complete the HyProMag USA, LLC ("HyProMag USA") bankable
feasibility study ("Feasibility Study") to engineer and design its
REE magnet recycling plants and a production facility in the United
States.
The Feasibility Study is expected to
be completed during H2 2024. HyProMag USA has the potential to
supply the United States with a sustainable, long term domestic
supply of neodymium/iron/boron (NdFeB) permanent magnets to enable
the creation of secure, low carbon and traceable rare-earth supply
chains.
Julian Treger, CoTec CEO commented: "The Feasibility Study
represents a significant milestone towards the construction of
commercial-scale magnet recycling and production facilities in the
United States. HyProMag is supported by the Minerals Security
Partnership[1] which aims to accelerate the
development of secure, diverse and sustainable supply chains for
critical energy minerals. We are looking forward to working with
BBA and PegasusTSI to develop these facilities using HyProMag's
considerable experience from the plants being developed at Tyseley
in the UK and in Germany following extensive piloting at the
University of Birmingham. As the Feasibility Study progresses,
HyProMag USA will be working and collaborating closely with local,
state and federal stakeholders."
Will Dawes, Mkango CEO commented: "We see the United States as a major growth opportunity,
underpinned by ongoing development of HyProMag's operations in the
UK and Germany, and leveraging off HyProMag's competitive
advantages in the rare earth magnet recycling sector -
the ability to
cost effectively liberate magnets from end-of-life scrap streams
and to produce recycled rare earth magnets with a significantly
reduced carbon footprint."
"As a result, HyProMag is receiving strong interest and
numerous enquiries for recycled magnets and recycling solutions,
and is engaged in multiple discussions on potential collaboration,
with test work trials being completed for a number of major
multinational companies.
"We look forward to working with BBA, PegasusTSI, HyProMag and
CoTec to build a leading rare earth magnet business in the United
States and other jurisdictions."
HyProMag USA plans to develop a low
cost, low carbon, sustainable rare earth magnet recycling and
production business underpinned by HyProMag Limited's ("HyProMag")
patented Hydrogen Processing of Magnet
Scrap ("HPMS") recycling technology. HyProMag has
sublicenced the HPMS technology to HyProMag USA, which is 50:50 per
cent owned by CoTec and Maginito.
The Feasibility Study will be based
on a hub and spoke model using three HPMS vessels and one magnet
manufacturing hub which will based in Texas (together the "US
Project"). The Feasibility Study will include the completion of
detailed engineering designs, as well as permitting and potential
site acquisition by the end of 2024, in line with the initial
project schedule, which targets initial revenue in 2025/2026.
Environment and permiting studies will be supported by US based
Weston Solutions, Inc.
Following completion of the
Feasibility Study, CoTec and Mkango will make a joint decision as
to whether HyProMag USA will proceed with the construction of the
US Project. CoTec is responsible for
funding the Feasibility Study and the project development costs.
Funding provided by CoTec would be in the form of shareholder loans
to HyProMag USA.
In parallel, HyProMag USA has also
started working on securing US Government
funding and strategic partnerships for feed supply and recycled
NdFeB magnet offtake.
HyProMag is commercialising HPMS
recycling technology in the UK, Germany and United States.
HPMS technology was developed at the University of
Birmingham, underpinned by approximately US$100 million of research
and development funding, and has major competitive advantages
versus other rare earth magnet recycling technologies, which are
largely focused on chemical processes but do not solve the
challenges of liberating magnets from end-of-life scrap streams -
HPMS provides the solution. HyProMag's company
presentation can be viewed via the following link:
HyProMag Corporate Presentation.
About Mkango Resources Ltd.
Mkango is listed on the AIM and the
TSX-V. Mkango's corporate strategy is to develop new sustainable
sources of neodymium, praseodymium, dysprosium and terbium to
supply accelerating demand from electric vehicles, wind turbines
and other clean technologies.
Mkango aims to become a market
leader in the production of recycled rare earth magnets, alloys and
oxides, through its interest in Maginito, which is owned 79.4 per
cent by Mkango and 20.6 per cent by CoTec.
Maginito holds a 100 per cent
interest in HyProMag and a 90 per cent direct and indirect interest
(assuming conversion of Maginito's convertible loan) in HyProMag
GmbH, focused on short loop rare earth magnet recycling in the UK
and Germany, respectively, and a 100 per cent interest in Mkango
Rare Earths UK Ltd ("Mkango UK"), focused on long loop rare earth
magnet recycling in the UK via a chemical route.
It also owns the advanced stage
Songwe Hill rare earths project and an extensive rare earths,
uranium, tantalum, niobium, rutile, nickel and cobalt exploration
portfolio in Malawi and the Pulawy rare earths separation project
in Poland.
For more information, please
visit www.mkango.ca
About CoTec Holdings Corp.
CoTec is a publicly traded
investment issuer listed on the Toronto Venture Stock Exchange
("TSX- V") and the OTCQB and trades under the symbol CTH and CTHCF
respectively. CoTec is an environment, social, and governance
("ESG")-focused company investing in innovative technologies that
have the potential to fundamentally change the way metals and
minerals can be extracted and processed for the purpose of applying
those technologies to undervalued operating assets and recycling
opportunities, as it transitions into a mid-tier mineral resource
producer.
CoTec is committed to supporting the
transition to a lower carbon future for the extraction industry, a
sector on the cusp of a green revolution as it
embraces technology and innovation. It has made four investments to date
and is actively pursuing operating opportunities where current
technology investments could be deployed.
For more information, please
visit www.cotec.ca.
Market Abuse Regulation (MAR) Disclosure
The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been
incorporated into UK law by the European Union (Withdrawal) Act
2018. Upon the publication of this
announcement via Regulatory Information
Service, this inside information is now considered to be in the
public domain.
Cautionary Note Regarding Forward-Looking
Statements
This news release contains
forward-looking statements (within the meaning of that term under
applicable securities laws) with respect to Mkango and CoTec.
Generally, forward looking statements can be identified by the use
of words such as "plans", "expects" or "is expected to",
"scheduled", "estimates" "intends", "anticipates", "believes", or
variations of such words and phrases, or statements that certain
actions, events or results "can", "may", "could", "would",
"should", "might" or "will", occur or be achieved, or the negative
connotations thereof. Readers are cautioned not to place undue
reliance on forward-looking statements, as there can be no
assurance that the plans, intentions or expectations upon which
they are based will occur. By their nature, forward-looking
statements involve numerous assumptions, known and unknown risks
and uncertainties, both general and specific, that contribute to
the possibility that the predictions, forecasts, projections and
other forward-looking statements will not occur, which may cause
actual performance and results in future periods to differ
materially from any estimates or projections of future performance
or results expressed or implied by such forward-looking statements.
Such factors and risks include, without limiting the foregoing, the
successful conclusion of the MDA, the availability of (or delays in
obtaining) financing to develop Songwe Hill, the Recycling Plants
being developed by Maginito in the UK, Germany and the US (the
"Maginito Recycling Plants"), the results of the Feasibility Study
and the Pulawy Separation Plant, governmental action and other
market effects on global demand and pricing for the metals and
associated downstream products for which Mkango is exploring,
researching and developing, geological, technical and regulatory
matters relating to the development of Songwe Hill, the ability to
scale the HPMS and chemical recycling technologies to commercial
scale, competitors having greater financial capability and
effective competing technologies in the recycling and separation
business of Maginito and Mkango, availability of scrap supplies for
Maginito's recycling activities, government regulation (including
the impact of environmental and other regulations) on and the
economics in relation to recycling and the development of the
Maginito Recycling Plants, and the Pulawy Separation Plant and
future investments in the United States pursuant to the proposed
cooperation agreement between Maginito and CoTec, the outcome and
timing of the completion of the feasibility studies, cost overruns,
complexities in building and operating the plants, and the positive
results of feasibility studies on the various proposed aspects of
Mkango's, Maginito's and CoTec's activities. The forward-looking
statements contained in this news release are made as of the date
of this news release. Except as required by law, the Company and
CoTec disclaim any intention and assume no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
applicable law. Additionally, the Company and CoTec undertake no
obligation to comment on the expectations of, or statements made
by, third parties in respect of the matters discussed
above.
For
further information on Mkango, please contact:
Mkango Resources Limited
William Dawes
Alexander Lemon
Chief Executive
Officer
President
will@mkango.ca
alex@mkango.ca
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
SP
Angel Corporate Finance LLP
Nominated Adviser and Joint
Broker
Jeff Keating, Caroline Rowe, Kasia
Brzozowska
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
Tavistock Communications
PR/IR Adviser
Jos Simson, Cath Drummond
UK: +44 (0) 20 7920 3150
mkango@tavistock.co.uk
For
further information on CoTec, please contract:
CoTec Holdings Corp.
Braam Jonker
Chief Financial Officer
braam.jonker@cotec.ca
Canada: +1 604 992-5600
The TSX Venture Exchange has
neither approved nor disapproved the contents of this press
release. Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any equity or other securities of
the Company in the United States. The securities of the Company
will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") and may not be offered
or sold within the United States to, or for the account or benefit
of, U.S. persons except in certain transactions exempt from the
registration requirements of the U.S. Securities
Act.